CHARLOTTE – A south Charlotte man used his car as collateral for a personal loan. Years ago, he fell behind on his loan payments, but no one contacted him about it, so he thought everything was fine. But a few days ago, his car was taken without any warning.
“John” was ashamed of what happened and asked Channel 9 not to use his real name, but he still wanted others to learn about his scare.
John says that after paying off his 2007 Toyota Camry, he eventually took out a personal loan and used the car as collateral.
“My son, he was born prematurely, so he was in the hospital for three months, so I was a little behind (on the payments),” he explained.
John says that some time passed and the lender of this personal loan did not contact him.
“I thought it was clear,” he said.
That was until recently one morning. “One night I went to sleep, woke up and it was gone,” he said.
He thought someone had stolen it, but eventually, a collection agency called to say his car had been taken.
John says it was bad enough losing his car, but what made it worse was that his apartment key and work ID were inside.
Action 9’s Jason Stoogenke emailed the company for it.
He would not talk about this case, citing privacy reasons. But John says the debt collector contacted him less than 24 hours later.
“I don’t know when you did it, but it was very quick, and they said, ‘Hey, we’re going to return your car and post your title,'” he told Stoogenke.
Here’s what you should know in both Carolinas:
– The statute of limitations for most consumer debts, such as credit cards and personal loans, is three years.
– Three years is subject to interpretation, but the general rule is that the clock starts running on the date of your last activity (so usually your last payment).
– Collection agencies can still try to collect after three years, but if they ask you, it’s too late.
– Having said that, in a case like this, which involved a guarantee, they can still take the guarantee without going to court. So read your contract carefully.
[ MORE ACTION 9: Drivers told they may lose licenses for traffic charges they thought were dismissed ]
Technically, this wasn’t a car repossession case because it wasn’t an auto loan, but here are your rights in these situations as well:
– If you somehow miss a payment or breach your contract, the lender has the right to repossess your car.
– The lender does not have to give you any notice before repossessing your car.
– Your property is even allowed to impound the vehicle.
– If you have personal items in the car, it may be difficult to get them back after the car is recovered.
(VIDEO: Wells Fargo to pay $3.7 million for consumer loan violations)
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